Innovative Methane and Ethane Leak Detection Tool

Lisa G. Spaeth Ophir Corporation

29 October 2003

Overview � Introduction to Ophir Corporation

� Ophir’s Technology

� Pipeline Demonstrations

� Commercialization Strategy

duoThaneduoThaneTM

Ophir Corporation

� Colorado Small Business � Founded in 1980

� Successfully Completed over 90 Contracts � U.S. Government and Aerospace

Companies

� Technology: Optical Remote Sensing Instrumentation

Ophir Corporation (cont’d.)

� Sole-source Supplier of only Laser Radar (Lidar) on the B-2 Stealth Bomber

� Military/Aerospace Design and Manufacturing Capability

� AS9000 Compliant (~ISO-9001)

Ophir Corporation (cont’d.)

� Previous Commercialization Success � Over $38 Million in Optical Remote-

Sensing Technologies

� Commercialization “Success Story” z Army, Navy, NASA

� 15 Years of Experience with Airborne Optical Systems � Own/Maintain Test Aircraft

� Optical Detection and Identification of both Methane and Ethane – Remotely

� Detection Sensitivity (300 m range) � 50 ppb Methane

� 33 ppb Ethane

� Long Term Ground-based Monitoring Capability

� Airborne Monitoring Capability

duoThaneduoThaneTM

� Detects and Identifies both Methane and Ethane Concentrations

� Provides Relative Severity of Leak

� Decreases False Alarms

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Benefits

Benefits

� Enables Non-intrusive Inspection

� Improves Inspection Speed

� Provides Fast Data Reporting

� Reduces Leak Survey Costs

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� Optical Infrared Absorption Method

� Easy to Use – No Extensive Training Required

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� Direct Assessment without Digging

� Quick Spot Check on Permanent Installations

� Installations Over Waterways for Monitoring Underwater Pipe

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Ground-based

� Flies on Fixed Wing and Rotary Aircraft

� Augments Airborne Vegetation Surveys

� Identifies Gas Concentration along with GPS Leak Position Reporting

� Flight Demonstration Slated for Q1 ‘04

AirborneduoThaneduoThaneTM

Market Opportunity

� The Natural Gas Industry is Large and Growing

� $130 Billion/year

� 60 Million Customers

� Natural Gas Demand is Growing

� Clean Burning Fuel of the Future

� “Integrity Monitoring” Regulations Changing the Industry

Future Markets

� Liquid Pipelines � Crude Oil, LPG, Gasoline, Propane, etc.

� Contribute to ~70% of all property damage produced by liquid pipelines in the U.S.

� Most Expensive Type of Pipeline in U.S.

� employed in Ground-based, Long-term Monitoring Configuration duoThaneduoThane

TM

Development Status � Prototype Demonstrations Completed

� Field Tests Completed • El Paso, WBI, Alyeska, EPA test, U.S.

DOE test, Private Oil & Gas Exploration Company

� Operational Natural Gas Pipeline Leaks � Three Levels of Leak Severity Demonstrated

� Range of ~300 m (~980 ft)

duoThaneduoThaneTM

Transmitter

Farm Tap

Receiver

Operational Pipeline Demonstration

test 1

test 2 test 3

drifting and dissipating plume

Glendive, MT Test Data

El Paso Demonstration

� First Demonstration of Detecting and Measuring Actual Leaks in the Field

� Data

� Measurement Techniques � Measurement Location

� Measured Both Methane and Ethane Concentrations, not Just Total Hydrocarbons

duoThaneduoThaneGeneral Agreement Between FID Data and

TM

� First “Oil on Water” Test

� First Atmospheric Methane and Ethane Measurements over Active Natural Seeps � Santa Barbara Channel, CA

� Shipborne and Pier Measurements �

�

Alyeska Demonstration

27 m (88 ft.) pathlength – ship measurement

460 m (1,500 ft.) – pier measurement

� Santa Barbara Channel

Alyeska Demonstration, cont.

ship position

(cont.)Alyeska Demonstration

10.2 10.4 10.6 10.8 11 11.2 11.4 11.6 11.8 12 10

-1

10 0

10 1

10 2 10/14/2003, 101403-100609, concentration vs. time, plotted on: 16-Oct-2003

time (hours)

met

hane

and

eth

ane

conc

entra

tion

(ppm

v)

methane 60 revolutions ethane 60 revolutions

~90 ppm methane

~ 9 ppm ethane

Development Status

� ~$370,000 Already Expended in R&D � U.S. EPA, U.S. DOE, Ophir Corporation

� $600,000 Awarded for Flight Test Demonstration

� U.S. DOE/NETL funding � Flight Test Demonstration in 4 Months

� Demonstration Over Operational Pipeline Completed – WBI, Inc., El Paso

� Demonstration Over Oil on Water - Alyeska

duoThaneduoThaneTM

Intellectual Property

� U.S. Patent Application Filed � Optical Remote Sensing Technology and

Hardware � May 25, 2002

� U.S. Provisional Patent Application � Optical Remote Sensing for Pipeline

Integrity Monitoring

� U.S. Registered Trademark Awarded

duoThane duoThaneTM

Ophir is actively seeking an Industry Partner to assist in bringing to Market

Commercialization Plans � Demonstrate validity of system as integrity

monitoring alternative to meet legislated requirements

� Manufacture product in-house at Ophir

� Distribute product via established leak detection product/service company

duoThaneduoThaneTM

Contact Information

Lisa G. Spaeth Ophir Corporation

lisas@ophir.com

www.ophir.com

(303) 933-2200